S&P 500 posted back-to-back weekly gains with unusually low volatility in July
Market breadth improving suggests C Fund strength beyond just mega-cap tech stocks
Fed meeting and Big Tech earnings next week could impact current bullish momentum
The S&P 500 scored back-to-back weekly gains and closed the week at 4536. With not much news on the economic front, earnings dominated the headlines and the markets trudged onward and upward. On Wednesday Tesla and Netflix reported earnings after the closing bell, but both had some unexpected news and sold off on Thursday and Friday. This led to a down week for the NASDAQ 100, but the Dow Jones Industrials Index made it 10 straight up days, something not seen since August 2017. From a technical perspective, this bullish market seems to be broadening as the Advance/Decline (A/D) lines are hitting new highs (A/D takes the difference between the number of advancing and declining issues and adds the result to the previous value. It rises when advances exceed declines and falls when declines exceed advances). Additionally, this market is making a steady push upwards with minimal volatility. What is unusual is the there have been no daily moves of greater than one percent in July. Next week will be busy as we get Mega Cap Tech reporting earnings and the Fed meeting. Hopefully there will be no surprises and the S&P 500 will make it three winning weeks in a row. For TSP TIPS we remain bullish and recommend no changes to our current investment mix.
The S&P 500 scored back-to-back weekly gains and closed the week at 4536. With not much news on the economic front, earnings dominated the headlines and the markets trudged onward and upward. On Wednesday Tesla and Netflix reported earnings after the closing bell, but both had some unexpected news and sold off on Thursday and Friday. This led to a down week for the NASDAQ 100, but the Dow Jones Industrials Index made it 10 straight up days, something not seen since August 2017. From a technical perspective, this bullish market seems to be broadening as the Advance/Decline (A/D) lines are hitting new highs (A/D takes the difference between the number of advancing and declining issues and adds the result to the previous value. It rises when advances exceed declines and falls when declines exceed advances). Additionally, this market is making a steady push upwards with minimal volatility. What is unusual is the there have been no daily moves of greater than one percent in July. Next week will be busy as we get Mega Cap Tech reporting earnings and the Fed meeting. Hopefully there will be no surprises and the S&P 500 will make it three winning weeks in a row. For TSP TIPS we remain bullish and recommend no changes to our current investment mix.